ADVERTISEMENT

Change in approach improves Hungarian tax collection rate

Banking

pixabay

Tax revenues in Hungary were 5% up year-on-year in 2017, by HUF 609 billion, the National Tax and Customs Administration (NAV) announced. The increase is due to a tendency of lower tax evasion, NAV chief András Tállai told state news wire MTI, noting that the increase outpaced the rate of GDP growth.

Total tax revenues amounted to HUF 13.402 trillion in 2017. The total rose even as the tax burden on families and businesses was cut by HUF 860 bln, noted Tállai.

The reason for the growth is that tax rates have decreased and it is no longer worth dodging taxes, the NAV head was cited as saying by news portal index.hu. Hungary has the lowest corporate tax rate and the second lowest personal income tax rate in the European Union, he added.

A change in approach at NAV, such as becoming more client-centered and providing assistance to taxpayers, also supported the improved tax morale, Tállai noted.

NAV has a new policy of cooperating with clients, as opposed to imposing fines or issuing debit collection orders. This means that taxpayers who fail to pay their taxes receive a notice. By complying with the notice, taxpayers avoid paying fines or additional costs.

Last year NAV collected HUF 50 bln following the issuance of such notices. This procedure is applied to customers with a debt of a maximum HUF 1 million to the tax authorities.

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.